PensionBee Group plc's (LON:PBEE) Shift From Loss To Profit

With the business potentially at an important milestone, we thought we'd take a closer look at PensionBee Group plc's (LON:PBEE) future prospects. PensionBee Group plc, a direct-to-consumer financial technology company, provides online pension services in the United Kingdom. With the latest financial year loss of UK£22m and a trailing-twelve-month loss of UK£14m, the UK£208m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which PensionBee Group will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for PensionBee Group

According to the 5 industry analysts covering PensionBee Group, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of UK£267k in 2025. Therefore, the company is expected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 91% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth

We're not going to go through company-specific developments for PensionBee Group given that this is a high-level summary, though, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. PensionBee Group currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of PensionBee Group which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at PensionBee Group, take a look at PensionBee Group's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Historical Track Record: What has PensionBee Group's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on PensionBee Group's board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.